Post
Topic
Board Trading Discussion
Topic OP
How to handle emotions when you lose during trading.
by
Youngkhngdiddy
on 04/04/2024, 14:32:39 UTC
 On one hand, it may seem that it is impossible to take control over emotions while trading, but at the same time, everything is possible in trading in case of constant learning, seamless practice and pure desire to attain goals in the financial industry. Handling emotions that appear once a trader bears losses or even faces a whole loss streak is a matter of experience. Supposing that one only begins their journey in trading. In that case, emotions are inevitable because the organism, namely the (Amygdala) in your brain, turns on the defensive mechanism, which is revealed via emotions, usually negative ones such as despair, fear, disappointment, anger and others.
 Professional traders or, at least, those who have acquired particular experience in trading understand a couple of simple rules that prevent excessive emotional bursts, rules such as:
1. Do not overtrade, always allocate time for relaxing and purifying the mind.

2. Do not abuse leverage.

3. Do not place high hopes on trading, always stay alert.

4. Act wisely and appeal to a rational sense rather than an emotional component.
 These are some of the key points about trading that are understood by those who have gained some experience.

 In case one faces a loss streak, and there is a need to handle bad emotions that force them to give up trading and leave the market, it is recommended to look at things soberly, turning on analytical thinking. Analyzing mistakes is one of those "pills" that can help to understand that the market is operated by regularities. It means that there is always a chance to conduct analysis correctly, even though it requires a bit more time than usual before opening the position. The prudent approach to analysis includes not only an analysis of made mistakes but also a review of successful deals because they have led to success.
 If nothing helps to deal with emotions, one can try different practices that are highly recommended in trading circles, such as meditation, mindfulness exercises, and others. They are aimed at relieving mental pain, suppressing negative thoughts, and gradually substituting them with positive ones. It is also of utmost importance not to approach the market while having anger or irritation because, in this case, actions are driven by emotions, not by rational sense.
 These are some methods and practices I think traders could use in controlling their emotions when they lose while trading, you could give your opinions or add more if you got any, also I'm open to corrections so feel free to include some corrections in any statement you feel I'm wrong.